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Chapter Eight. Differentiation and Positioning. Exhibit 8.1 Generic Competitive Strategies. Competitive Advantage. Competitive Scope. Source: Adapted from Michael Porter, Competitive Advantage, New York: The Free Press, 1985, p. 12.

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chapter eight

Chapter Eight

Differentiation and Positioning

slide3

Exhibit 8.1Generic Competitive Strategies

Competitive Advantage

Competitive

Scope

Source: Adapted from Michael Porter, Competitive Advantage,New York: The Free Press, 1985, p. 12.

exhibit 8 3 comparison of physical and perceptual positioning analysis
Exhibit 8.3Comparison of Physical and Perceptual Positioning Analysis
  • Physical positioning
  • Technical orientation
  • Physical characteristics
  • Objective measures
  • Data readily available
  • Physical brand properties
  • Large number of dimensions
  • Represents impact of product specs and price
  • Direct R&D implications
  • Perceptual positioning
  • Consumer orientation
  • Perceptual attributes
  • Perceptual measures
  • Need for marketing research
  • Perceptual brand positions and positioning intensities
  • Limited number of dimensions
  • Represents impact of product specs and communication
  • R&D implications need to be interpreted
exhibit 8 4 steps in the positioning process 1 of 2

1. Identify relevant set of competitive products serving a target market.

2. Identify the set of determinant attributes that define the “product space” in which positions of current offerings are located.

3. Collect information from a sample of customers and potential customers about perceptions of each product on the determinant attributes.

Exhibit 8.4Steps in the Positioning Process(1 of 2)
exhibit 8 4 steps in the positioning process 2 of 2

4. Determine product’s current location (positioning) in the product space and intensity thereof.

5. Determine customers’ most preferred combination of determinant attributes.

6. Examine the fit between preferences of market segments and current position of product (market positioning).

7. Write positioning statement or value proposition to guide development and implementation of marketing strategy.

Exhibit 8.4Steps in the Positioning Process(2 of 2)
exhibit 8 5 perceptual map of women s clothing retailers in washington d c
Exhibit 8.5Perceptual Map of Women’s Clothing Retailers in Washington, D.C.

Washington 1990 Women’s fashion market

The Limited

Neiman-Marcus

Saks

Bloomingdale’s

Macy’s

Nordstrom

Women’s-wear fashionability

Conservative versus current

versus very latest

Hit or Miss

Dress

Barn

TJ Maxx

Garfinkels

Sassafras

The Gap

Casual Corner

Loehmann’s

L&T

Marshalls

Britches

Hecht’s

Kmart

Woodward & Lothrop

Sears

JC Penney

Talbots

Women’s-wear value for the money

Worst value

Best value

Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990, as shown in Michael Levy and Barton A. Weitz, Retailing Management (Burr Ridge, IL: Richard D. Irwin, 1992), p. 205.

slide8
Exhibit 8.6Perceptual Map of Women’s Clothing Retailers in Washington, D.C., Showing the Ideal Points of a Segment of Consumers

Washington 1990 Women’s fashion market

The Limited

Neiman-Marcus

Saks

Bloomingdale’s

Macy’s

Nordstrom

Women’s-wear fashionability

Conservative versus current

versus very latest

Hit or Miss

Dress

Barn

TJ Maxx

Garfinkels

Sassafras

The Gap

Casual Corner

Loehmann’s

L&T

Marshalls

Britches

Hecht’s

Kmart

Woodward & Lothrop

Sears

JC Penney

Talbots

Women’s-wear value for the money

Worst value

Best value

Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990.

slide9
Exhibit 8.7Perceptual Map of Women’s Clothing Retailers in Washington, D.C., Showing Five Segments Based on Ideal Points

Washington 1990 Women’s fashion market

The Limited

Neiman-Marcus

3

2

Saks

4

Bloomingdale’s

Macy’s

Nordstrom

Women’s-wear fashionability

Conservative versus current

versus very latest

Hit or Miss

Dress

Barn

TJ Maxx

Garfinkels

Sassafras

The Gap

Casual Corner

Loehmann’s

1

L&T

Marshalls

Britches

Hecht’s

Kmart

Woodward & Lothrop

5

Sears

JC Penney

Talbots

Women’s-wear value for the money

Worst value

Best value

Source: Adapted from Douglas Tigert and Stephen Arnold, “Nordstrom: How Good Are They?” Babson College Retailing Research Reports, September 1990.

slide10

Exhibit 8.8Positioning Statement and Value Proposition for Volvo Automobiles

in the United States

Value Proposition

  • Target market: Upscale American families
  • Benefits offered: Safety, durability
  • Price Range: 20% premium over similar cars

Positioning Statement

For upscale American families, Volvo is the automobile that offers the utmost in safety and durability.